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| 5 | 5 | | 2025 -- S 0446 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001292 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA |
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| 16 | 16 | | Introduced By: Senators Vargas, Kallman, Quezada, McKenney, Mack, Gu, Appollonio, |
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| 17 | 17 | | Britto, and Bissaillon |
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| 18 | 18 | | Date Introduced: February 26, 2025 |
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| 19 | 19 | | Referred To: Senate Finance |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | SECTION 1. Proposition to be submitted to the people. – 1 |
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| 24 | 24 | | At the general election to be held on the Tuesday next after the first Monday in November 2 |
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| 25 | 25 | | 2026, there shall be submitted to the people ("people") of the State of Rhode Island ("state"), for 3 |
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| 26 | 26 | | their approval or rejection, the following proposition: 4 |
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| 27 | 27 | | "Shall the action of the general assembly, by an act passed at the January 2025 session, 5 |
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| 28 | 28 | | authorizing the issuance of bonds, refunding bonds, and/or temporary notes of the State of Rhode 6 |
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| 29 | 29 | | Island for the capital project and in the amount listed below be approved, and the issuance of bonds, 7 |
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| 30 | 30 | | refunding bonds, and/or temporary notes authorized in accordance with the provisions of said act?" 8 |
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| 31 | 31 | | Project 9 |
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| 32 | 32 | | (1) Transit Forward RI 2040 $100,000,000 10 |
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| 33 | 33 | | Approval of this question will allow the State of Rhode Island to issue general obligation 11 |
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| 34 | 34 | | bonds, refunding bonds, and/or temporary notes in an amount not to exceed one hundred million 12 |
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| 35 | 35 | | dollars ($100,000,000), to provide direct funding for a statewide transit system by providing 13 |
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| 36 | 36 | | improvement to: bus stops and shelters; safety and access to bus stops, including crosswalks, 14 |
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| 37 | 37 | | sidewalks and curb ramps; mobility hub and passenger facility infrastructure, including bathrooms, 15 |
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| 38 | 38 | | sheltered and secured bike racks and indoor waiting areas; matching funds for federal grants for 16 |
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| 39 | 39 | | high capacity transit lines planned pursuant to the transit master plan; and, operational support 17 |
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| 40 | 40 | | infrastructure for technology and agency facility improvements and expansion. 18 |
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| 41 | 41 | | SECTION 2. Ballot labels and applicability of general election laws. – 19 |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | LC001292 - Page 2 of 7 |
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| 45 | 45 | | The secretary of state shall prepare and deliver to the state board of elections ballot labels 1 |
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| 46 | 46 | | for the project provided for in section 1 hereof with the designations "approve" or "reject" provided 2 |
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| 47 | 47 | | next to the description of the project to enable voters to approve or reject the proposition. The 3 |
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| 48 | 48 | | general election laws, so far as consistent herewith, shall apply to this proposition. 4 |
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| 49 | 49 | | SECTION 3. Approval of project by people. – 5 |
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| 50 | 50 | | If a majority of the people voting on the proposition in section 1 hereof shall vote to 6 |
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| 51 | 51 | | approve the project stated therein, said project shall be deemed to be approved by the people. The 7 |
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| 52 | 52 | | authority to issue bonds, refunding bonds and/or temporary notes of the state shall be limited to the 8 |
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| 53 | 53 | | aggregate amount for the project as set forth in the proposition, which has been approved by the 9 |
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| 54 | 54 | | people. 10 |
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| 55 | 55 | | SECTION 4. Bonds for capital development program. – 11 |
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| 56 | 56 | | The general treasurer is hereby authorized and empowered, with the approval of the 12 |
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| 57 | 57 | | governor, and in accordance with the provisions of this act to issue capital development bonds in 13 |
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| 58 | 58 | | serial form, in the name of and on behalf of the State of Rhode Island, in amounts as may be 14 |
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| 59 | 59 | | specified by the governor in an aggregate principal amount not to exceed the total amount for the 15 |
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| 60 | 60 | | project approved by the people and designated as "capital development loan of 2026 bonds." 16 |
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| 61 | 61 | | Provided, however, that the aggregate principal amount of such capital development bonds and of 17 |
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| 62 | 62 | | any temporary notes outstanding at any one time issued in anticipation thereof pursuant to section 18 |
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| 63 | 63 | | 7 hereof shall not exceed the total amount for the project approved by the people. All provisions in 19 |
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| 64 | 64 | | this act relating to "bonds" shall also be deemed to apply to "refunding bonds." 20 |
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| 65 | 65 | | Capital development bonds issued under this act shall be in denominations of one thousand 21 |
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| 66 | 66 | | dollars ($1,000) each, or multiples thereof, and shall be payable in any coin or currency of the 22 |
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| 67 | 67 | | United States which at the time of payment shall be legal tender for public and private debts. These 23 |
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| 68 | 68 | | capital development bonds shall bear such date or dates, mature at specified time or times, but not 24 |
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| 69 | 69 | | mature beyond the end of the twentieth state fiscal year following the fiscal year in which they are 25 |
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| 70 | 70 | | issued; bear interest payable semi-annually at a specified rate or different or varying rates; be 26 |
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| 71 | 71 | | payable at a designated time or times at a specified place or places; be subject to express terms of 27 |
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| 72 | 72 | | redemption or recall, with or without premium; be in a form, with or without interest coupons 28 |
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| 73 | 73 | | attached; carry such registration, conversion, reconversion, transfer, debt retirement, acceleration 29 |
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| 74 | 74 | | and other provisions as may be fixed by the general treasurer, with the approval by the governor, 30 |
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| 75 | 75 | | upon each issue of such capital development bonds at the time of each issue. Whenever the 31 |
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| 76 | 76 | | governor shall approve the issuance of such capital development bonds, the governor's approval 32 |
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| 77 | 77 | | shall be certified to the secretary of state; the bonds shall be signed by the general treasurer and 33 |
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| 78 | 78 | | countersigned by the secretary of state and shall bear the seal of the state. The signature approval 34 |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | LC001292 - Page 3 of 7 |
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| 82 | 82 | | of the governor shall be endorsed on each bond. 1 |
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| 83 | 83 | | SECTION 5. Refunding bonds for 2026 capital development program. – 2 |
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| 84 | 84 | | The general treasurer is hereby authorized and empowered, with the approval of the 3 |
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| 85 | 85 | | governor, and in accordance with the provisions of this act, to issue bonds to refund the 2026 capital 4 |
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| 86 | 86 | | development program bonds, in the name of and on behalf of the state, in amounts as may be 5 |
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| 87 | 87 | | specified by the governor in an aggregate principal amount not to exceed the total amount approved 6 |
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| 88 | 88 | | by the people, to be designated as "capital development program loan of 2026 refunding bonds" 7 |
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| 89 | 89 | | (hereinafter "refunding bonds"). 8 |
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| 90 | 90 | | The general treasurer with the approval of the governor shall fix the terms and form of any 9 |
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| 91 | 91 | | refunding bonds issued under this act in the same manner as the capital development bonds issued 10 |
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| 92 | 92 | | under this act, except that the refunding bonds may not mature more than twenty (20) years from 11 |
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| 93 | 93 | | the date of original issue of the capital development bonds being refunded. 12 |
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| 94 | 94 | | The proceeds of the refunding bonds, exclusive of any premium and accrual interest and 13 |
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| 95 | 95 | | net the underwriters' cost, and cost of bond insurance, shall, upon their receipt, be paid by the 14 |
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| 96 | 96 | | general treasurer immediately to the paying agent for the capital development bonds which are to 15 |
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| 97 | 97 | | be called and prepaid. The paying agent shall hold the refunding bond proceeds in trust until they 16 |
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| 98 | 98 | | are applied to prepay the capital development bonds. While such proceeds are held in trust, the 17 |
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| 99 | 99 | | proceeds may be invested for the benefit of the state in obligations of the United States of America 18 |
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| 100 | 100 | | or the State of Rhode Island. 19 |
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| 101 | 101 | | If the general treasurer shall deposit with the paying agent for the capital development 20 |
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| 102 | 102 | | bonds the proceeds of the refunding bonds, or proceeds from other sources, amounts that, when 21 |
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| 103 | 103 | | invested in obligations of the United States or the State of Rhode Island, are sufficient to pay all 22 |
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| 104 | 104 | | principal, interest, and premium, if any, on the capital development bonds until these bonds are 23 |
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| 105 | 105 | | called for prepayment, then such capital development bonds shall not be considered debts of the 24 |
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| 106 | 106 | | State of Rhode Island for any purpose starting from the date of deposit of such monies with the 25 |
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| 107 | 107 | | paying agent. The refunding bonds shall continue to be a debt of the state until paid. 26 |
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| 108 | 108 | | The term "bond" shall include "note," and the term "refunding bonds" shall include 27 |
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| 109 | 109 | | "refunding notes" when used in this act. 28 |
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| 110 | 110 | | SECTION 6. Proceeds of capital development program. – 29 |
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| 111 | 111 | | The general treasurer is directed to deposit the proceeds from the sale of capital 30 |
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| 112 | 112 | | development bonds issued under this act, exclusive of premiums and accrued interest and net the 31 |
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| 113 | 113 | | underwriters' cost, and cost of bond insurance, in one or more of the depositories in which the funds 32 |
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| 114 | 114 | | of the state may be lawfully kept in special accounts (hereinafter cumulatively referred to as "such 33 |
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| 115 | 115 | | capital development bond fund") appropriately designated for the project set forth in section 1 34 |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | LC001292 - Page 4 of 7 |
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| 119 | 119 | | hereof which shall have been approved by the people to be used for the purpose of paying the cost 1 |
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| 120 | 120 | | of the project so approved. 2 |
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| 121 | 121 | | All monies in the capital development bond fund shall be expended for the purposes 3 |
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| 122 | 122 | | specified in the proposition provided for in section 1 hereof under the direction and supervision of 4 |
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| 123 | 123 | | the director of administration (hereinafter referred to as "director"). The director, or designee shall 5 |
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| 124 | 124 | | be vested with all power and authority necessary or incidental to the purposes of this act, including, 6 |
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| 125 | 125 | | but not limited to, the following authority: 7 |
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| 126 | 126 | | (1) To acquire land or other real property or any interest, estate or right therein as may be 8 |
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| 127 | 127 | | necessary or advantageous to accomplish the purposes of this act; 9 |
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| 128 | 128 | | (2) To direct payment for the preparation of any reports, plans and specifications, and 10 |
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| 129 | 129 | | relocation expenses and other costs such as for furnishings, equipment designing, inspecting and 11 |
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| 130 | 130 | | engineering, required in connection with the implementation of the project set forth in section 1 12 |
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| 131 | 131 | | hereof; 13 |
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| 132 | 132 | | (3) To direct payment for the costs of construction, rehabilitation, enlargement, provision 14 |
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| 133 | 133 | | of service utilities, and razing of facilities, and other improvements to land in connection with the 15 |
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| 134 | 134 | | implementation of the project set forth in section 1 hereof; and 16 |
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| 135 | 135 | | (4) To direct payment for the cost of equipment, supplies, devices, materials and labor for 17 |
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| 136 | 136 | | repair, renovation or conversion of systems and structures as necessary for the 2026 capital 18 |
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| 137 | 137 | | development program bonds or notes hereunder from the proceeds thereof. No funds shall be 19 |
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| 138 | 138 | | expended in excess of the amount of the capital development bond fund designated for the project 20 |
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| 139 | 139 | | authorized in section 1 hereof. With respect to the bonds and temporary notes described in section 21 |
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| 140 | 140 | | 1, the proceeds shall be used for the following purpose: 22 |
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| 141 | 141 | | Question 1, relating to bonds in the amount of one hundred million dollars ($100,000,000) 23 |
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| 142 | 142 | | to provide funding for a statewide transit system by improvement of existing services, expansion 24 |
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| 143 | 143 | | of services to new areas, development of high capacity transit, improvement of access to transit and 25 |
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| 144 | 144 | | adoption of new technologies and methods to make service easier to use. 26 |
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| 145 | 145 | | SECTION 7. Sale of bonds and notes. – 27 |
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| 146 | 146 | | Any bonds or notes issued under the authority of this act shall be sold at not less than the 28 |
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| 147 | 147 | | principal amount thereof, in such mode and on such terms and conditions as the general treasurer, 29 |
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| 148 | 148 | | with the approval of the governor, shall deem to be in the best interests of the state. 30 |
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| 149 | 149 | | Any premiums and accrued interest, net of the cost of bond insurance and underwriter's 31 |
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| 150 | 150 | | discount, which may be received on the sale of the capital development bonds or notes shall become 32 |
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| 151 | 151 | | part of the Rhode Island capital plan fund of the state, unless directed by federal law or regulation 33 |
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| 152 | 152 | | to be used for some other purpose. 34 |
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| 153 | 153 | | |
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| 154 | 154 | | |
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| 155 | 155 | | LC001292 - Page 5 of 7 |
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| 156 | 156 | | In the event that the amount received from the sale of the capital development bonds or 1 |
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| 157 | 157 | | notes exceeds the amount necessary for the purposes stated in section 6 hereof, the surplus may be 2 |
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| 158 | 158 | | used to the extent possible to retire the bonds as the same may become due, to redeem them in 3 |
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| 159 | 159 | | accordance with the terms thereof or otherwise to purchase them as the general treasurer, with the 4 |
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| 160 | 160 | | approval of the governor, shall deem to be in the best interests of the state. 5 |
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| 161 | 161 | | Any bonds or notes issued under the provisions of this act and coupons on any capital 6 |
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| 162 | 162 | | development bonds, if properly executed by the manual or electronic signatures of officers of the 7 |
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| 163 | 163 | | state in office on the date of execution, shall be valid and binding according to their tenor, 8 |
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| 164 | 164 | | notwithstanding that before the delivery thereof and payment therefor, any or all such officers shall 9 |
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| 165 | 165 | | for any reason have ceased to hold office. 10 |
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| 166 | 166 | | SECTION 8. Bonds and notes to be tax exempt and general obligations of the state. – 11 |
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| 167 | 167 | | All bonds and notes issued under the authority of this act shall be exempt from taxation in 12 |
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| 168 | 168 | | the state and shall be general obligations of the state, and the full faith and credit of the state is 13 |
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| 169 | 169 | | hereby pledged for the due payment of the principal and interest on each of such bonds and notes 14 |
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| 170 | 170 | | as the same shall become due. 15 |
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| 171 | 171 | | SECTION 9. Investment of monies in fund. – 16 |
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| 172 | 172 | | All monies in the capital development fund not immediately required for payment pursuant 17 |
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| 173 | 173 | | to the provisions of this act may be invested by the investment commission, as established by 18 |
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| 174 | 174 | | chapter 10 of title 35, entitled "state investment commission," pursuant to the provisions of such 19 |
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| 175 | 175 | | chapter; provided, however, that the securities in which the capital development fund is invested 20 |
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| 176 | 176 | | shall remain a part of the capital development fund until exchanged for other securities; and 21 |
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| 177 | 177 | | provided further, that the income from investments of the capital development fund shall become 22 |
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| 178 | 178 | | a part of the general fund of the state and shall be applied to the payment of debt service charges 23 |
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| 179 | 179 | | of the state, unless directed by federal law or regulation to be used for some other purpose, or to 24 |
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| 180 | 180 | | the extent necessary, to rebate to the United States treasury any income from investments (including 25 |
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| 181 | 181 | | gains from the disposition of investments) of proceeds of bonds or notes to the extent deemed 26 |
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| 182 | 182 | | necessary to exempt (in whole or in part) the interest paid on such bonds or notes from federal 27 |
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| 183 | 183 | | income taxation. 28 |
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| 184 | 184 | | SECTION 10. Appropriation. – 29 |
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| 185 | 185 | | To the extent the debt service on these bonds is not otherwise provided, a sum sufficient to 30 |
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| 186 | 186 | | pay the interest and principal due each year on bonds and notes hereunder is hereby annually 31 |
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| 187 | 187 | | appropriated out of any money in the treasury not otherwise appropriated. 32 |
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| 188 | 188 | | SECTION 11. Advances from general fund. – 33 |
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| 189 | 189 | | The general treasurer is authorized, with the approval of the director and the governor, in 34 |
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| 190 | 190 | | |
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| 191 | 191 | | |
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| 192 | 192 | | LC001292 - Page 6 of 7 |
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| 193 | 193 | | anticipation of the issue of notes or bonds under the authority of this act, to advance to the capital 1 |
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| 194 | 194 | | development bond fund for the purposes specified in section 6 hereof, any funds of the state not 2 |
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| 195 | 195 | | specifically held for any particular purpose; provided, however, that all advances made to the 3 |
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| 196 | 196 | | capital development bond fund shall be returned to the general fund from the capital development 4 |
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| 197 | 197 | | bond fund forthwith upon the receipt by the capital development fund of proceeds resulting from 5 |
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| 198 | 198 | | the issue of notes or bonds to the extent of such advances. 6 |
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| 199 | 199 | | SECTION 12. Federal assistance and private funds. – 7 |
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| 200 | 200 | | In carrying out this act, the director, or designee, is authorized on behalf of the state, with 8 |
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| 201 | 201 | | the approval of the governor, to apply for and accept any federal assistance which may become 9 |
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| 202 | 202 | | available for the purpose of this act, whether in the form of loan or grant or otherwise, to accept the 10 |
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| 203 | 203 | | provision of any federal legislation therefor, to enter into, act and carry out contracts in connection 11 |
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| 204 | 204 | | therewith, to act as agent for the federal government in connection therewith, or to designate a 12 |
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| 205 | 205 | | subordinate so to act. Where federal assistance is made available, the project shall be carried out in 13 |
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| 206 | 206 | | accordance with applicable federal law, the rules and regulations thereunder and the contract or 14 |
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| 207 | 207 | | contracts providing for federal assistance, notwithstanding any contrary provisions of state law. 15 |
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| 208 | 208 | | Subject to the foregoing, any federal funds received for the purposes of this act shall be deposited 16 |
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| 209 | 209 | | in the capital development bond fund and expended as a part thereof. The director, or designee may 17 |
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| 210 | 210 | | also utilize any private funds that may be made available for the purposes of this act. 18 |
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| 211 | 211 | | SECTION 13. Sections 1, 2, 3, 11 and 12 of this act shall take effect upon passage. The 19 |
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| 212 | 212 | | remaining sections of this act shall take effect when and if the state board of elections shall certify 20 |
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| 213 | 213 | | to the secretary of state that a majority of the qualified electors voting on the proposition contained 21 |
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| 214 | 214 | | in section 1 hereof have indicated their approval of the project thereunder. 22 |
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| 215 | 215 | | ======== |
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| 216 | 216 | | LC001292 |
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| 218 | 218 | | |
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| 219 | 219 | | |
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| 220 | 220 | | LC001292 - Page 7 of 7 |
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| 221 | 221 | | EXPLANATION |
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| 222 | 222 | | BY THE LEGISLATIVE COUNCIL |
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| 223 | 223 | | OF |
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| 224 | 224 | | A N A C T |
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| 225 | 225 | | RELATING TO CAPITAL DEVELOPMENT PROGRAM -- 2026 BOND REFERENDA |
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| 226 | 226 | | *** |
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| 227 | 227 | | This act would submit the state's 2026 capital development program requesting the 1 |
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| 228 | 228 | | issuance of general obligation bonds totaling one hundred million dollars ($100,000,000) for 2 |
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| 229 | 229 | | approval of the electorate at the general election to be held in November, 2026. 3 |
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| 230 | 230 | | Sections 1, 2, 3, 11 and 12 of this act would take effect upon passage. The remaining 4 |
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| 231 | 231 | | sections of this act would take effect when and if the state board of elections shall certify to the 5 |
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| 232 | 232 | | secretary of state that a majority of the qualified electors voting on the proposition contained in 6 |
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| 233 | 233 | | section 1 hereof have indicated their approval the project thereunder. 7 |
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| 234 | 234 | | ======== |
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| 235 | 235 | | LC001292 |
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| 237 | 237 | | |
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